The utility’s role is changing, and regulation must change along with it – to spur innovation and respond to evolving customer needs. Modernizing the industry will require a dynamic approach.
Encore for Negawatts?
Congress renews PURPA’s call for conservation and load management, but the world has changed since the 1970s.
through bilateral trading contracts. (For the full explanation, see Comments of ISO New England, pp. 10-14.)
ISO-NE admits that its model is still a work-in-progress, but says it can use this method even to calculate the benefits of extending full nodal LMP pricing (“dynamic pricing”) to individual loads.
In fact, it estimates that over a five-year period, dynamic pricing for loads of 1 MW or greater (what is now enjoyed only by power producers on the supply side) could bring benefits of $340, at a cost of only $6.7 million a year, “at most.”